Zscaler (ZS) closed the most recent trading day at $208.66, moving +1.13% from the previous trading session. This move lagged the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.18%.
Prior to today's trading, shares of the cloud-based information security provider had lost 10.03% lagged the Computer and Technology sector's loss of 1.07% and the S&P 500's loss of 0.42%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. In that report, analysts expect Zscaler to post earnings of $0.89 per share. This would mark year-over-year growth of 14.1%. Meanwhile, our latest consensus estimate is calling for revenue of $798 million, up 23.17% from the prior-year quarter.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $3.8 per share and revenue of $3.29 billion. These results would represent year-over-year changes of +15.85% and +23.14%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Zscaler. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 16.67% increase. Zscaler presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Zscaler currently has a Forward P/E ratio of 54.34. Its industry sports an average Forward P/E of 51.12, so one might conclude that Zscaler is trading at a premium comparatively.
We can also see that ZS currently has a PEG ratio of 2.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ZS's industry had an average PEG ratio of 2.66 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Zscaler, Inc. (ZS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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